Judge Wants Withdrawal Exceptions

May 17, 1985|By United Press International

ANNAPOLIS, MD. — A judge Thursday gave Gov. Harry Hughes six days to develop a policy granting exceptions to a $1,000 monthly limit on withdrawals ordered to stem a massive run on privately insured savings and loans.

Baltimore Circuit Judge Joseph Kaplan delayed action on a petition by three Maryland thrifts seeking to alter Hughes' order, which has disrupted business activity in the state and has been met by protest from small checking-account holders.

The $1,000-a-month limit on withdrawals, which became effective when Hughes declared a state of emergency Tuesday, also covers savings accounts, certificates of deposits and electronic transactions.

The governor's action, while unpopular, has been successful. Lines were non-existent at the most troubled savings and loans Thursday, and a spokesman said the thrifts were experiencing what was hoped to be their last day of ''high level'' withdrawals.

The judge's Wednesday deadline may be moot as a House committee met Thursday to begin considering legislation giving the governor broad powers to act during a banking crisis.